https://www.taxtmi.com/caselaws?id=313529 An addition for alleged bogus purchases cannot be sustained merely because suppliers were treated as suspicious hawala dealers by the Sales Tax Department. Where the assessee produces purchase invoices, ledger accounts, bank payment evidence, stock reconciliation and quantitative details, and the Revenue brings no independent material showing cash return, defects in books, or unverifiable sales, the purchases cannot be rejected on third-party suspicion alone. Failure to supply the adverse material and allow cross-examination also offends natural justice. On these facts, the addition was rightly deleted. en-us Fri, 23 Mar 2018 00:00:00 +0530 Fri, 19 Apr 2024 21:06:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313529 An addition for alleged bogus purchases cannot be sustained merely because suppliers were treated as suspicious hawala dealers by the Sales Tax Department. Where the assessee produces purchase invoices, ledger accounts, bank payment evidence, stock reconciliation and quantitative details, and the Revenue brings no independent material showing cash return, defects in books, or unverifiable sales, the purchases cannot be rejected on third-party suspicion alone. Failure to supply the adverse material and allow cross-examination also offends natural justice. On these facts, the addition was rightly deleted. Case-Laws Income Tax Fri, 23 Mar 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313529